New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-10-07
WESTERN UNION TAKES IT.
MR.. GARRETT'S TELEGRAPH COMPANY
SWALLOWED UP.
THE LoNG-TALKED-oF, MUCH-DELAYED CoNsoIIDA.
TioN REACHED AT LAsT-THE END or YEARS
OF FIERCE STRIFE BETWEEN TIE TWO
'RIvALs-TERMs OF THE sA,H--wALL
STREET QUICKLY AprrrIaD.

INTO actual possession OF the baltimore and OHIO
Telegraph property yesterday afternoon. This Pc
suit has been expected for long time and since
the management of the Baltimore and Ohio
Railroad was surrendered in effect by Robert
Garrett it has been regarded inevitable. The
terms on which the transfer was made are UNDER
stood to be s5,000,00O in Western Union stock,
for which the company receives the entire stock
of the Baltimore and OHIO Telegraph Company,
and n favorable contract for fifty years with thc
Baltimore and Ohio Railroad The delivery Of
the stock in accordance with this agreement WAS
made about p. m. yesterday, and immediate
control of the property given.
The final negotiations were conducted by Dr.
Norvin Green president Of the Western Union
Company, and j. Perpont Morgan, representing
the syndicate which month ago agreed to loan
the Baltimore and Ohio Railroad $4,000. 600 Oh
certain conditions. William f. Burns, president
pro TEN. of the railroad company, came to New
York to confirm the proposed sae, and special
meeting of the Executive Committee of tie
Western Union Company was held just before
! noon yesterday TO approve it. The transfer WAS
made afterward, and all the Baltimore and
Ohio telegraph lines were turned over to tic
Western Union. No changes were made, but all
business was for the account OF the new owncrs.
THE CONTRACT WITH TIE RAILROAD COMPANY.
While the Baltimore and Ohio Railroad owned
along the railroad was only leased to the t,e-
graph company. The purchase of the entire capital
stock could not give the Western Union complete
control Of the L legraph system and the contract
with the railroad company was necessity. The
contract Is the usual one made with railroad
companies. it is understood. but on more favora-
lie terms. The new lines, built BY the telegraph
company, are now absolutely owned by the
Western Union, while the railroad lines proper
controlled under the terms OF the fifty years
contract. The result Is simply that the Baltimore
and Ohio Railroad has been bull ling telegraph
lines for the Western Union and now admits that
company TO it, raltoad lines, the very consequence
which it sought to avoid by engaging in u
general telegraph buSrcss.
The policy Of the syndicate which virtually
undertook the reorganization of the Baltimore
and Ohio Railroad is made clear by the sale II
the express business and now by that Of tho
telegraph system. similar disposition of tho
sleeping car interest may tc made at any time.
The syndicate imposed heavy conditions on Presi-
dent Garrett when il aSre'd to relieve him from
bis embarrassment, hut they were in the direction
Of n safe ana economical administration Of tic
company's affairs.
THE PLANS To BUILD Up THE SYSTEM.
/ 1t was purposod. in fact, that the company
should be stripped OF unnecessary burdens, and
that the railroad should be- brought into com
pIctc harmony with other interests which 1t hal
previously antaconiled J. Iicipont Morgan stated
the conditions, when the syndicate WAS formed,
as follows: First, the Notification Of state
ments as made; secondly, that the managcmone
OF the company shall be- placed in competent
hands satisfactory to the syndicate, and third,
that satisfactory contracts shall tc made between
tie Baltimore and Ohio and other railroads Zoe
Ncw-fork business which shall remove all 'n'ae-
oa>m between them ana prevent tie construction
Of expensive parallel lncs.' This policy iS
being carried out by the syndicate. ana tic exact
tuiAmont of the conIitonS Is oni5 question
oI t''ne'
i'' MANY r"'"'.H o", '' ,,"-''p" prop "
r'.' d n'f' ''N '''.'',' j." ""' a. "
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"''',7'" '"''"' 81 'o''''N' '"' "l"'" ''N '"''"n'
}" uo A'S''"'''"' caused some "'"N' ''l i"'
p"P"'' u '"' SS""''"" iro..'N s"''''' -
"''''uo"' II was r""'ore" IN wa" N'r''' '''F
!'N'''""S forenoon ''"t t"e "-''''u"lS """
"'Nr N"'''''"' anu VIZ" '' ""N MUM ''"' =
'i0'"l "'',''- u '''e "'S'In '""h HN.'''N'
committee h'd ue'h cdh'd tie fumo'' ''.'M'
comparatively certainty. directors Of Tie COM
pany and persons lahilar with the progress oi the
negotiations P'''"N'N '''"S'n 10 supply any
u'InlS ol inc o"tSa'h' ana "rlo'c tIc 'oHhni'''
adjourned the members agreed among u-cmS' Veg
thdt they Should say nothing about the action
that hnd hecn taken'
Mr. Morgan, who Is Western Union director,
but not member Of tie committee, said alter
ward that the transaction had been comp ted,
"'N"u-h lie refused TO h"i>e known the terms.
lie saia:
Inc tc',Ir"Ih system mas "'h soii 10 ''e
western 'hloil nut 'i' terms must pe "'talh'd
from pr. "r''h' Inc S"le 'N "'Sol''' ana n"'S
h"t hecd lutti'r acuoh pN the bllumoc ahd
oMo hallroad IN any way. out authority 10